On February 7, 2024, Alibaba released its quarterly report, with an operating income of 2,6034.8 billion yuan, a year-on-year increase of 5%, net profit of 1443.3 billion yuan, down 77% year-on-year. Cash flow from operating activities was 6471.6 billion yuan, down 26% year-on-year.
It should be said that this is a lower than expected failing report card, with peak sales revenue and ** profit. Alibaba's explanation of profit is the valuation of investment projects, but it cannot justify cash flow. Cash flow is a more important indicator than profit, and this indicator**26% indicates that there is indeed a big problem with the operation.
The market had great expectations for Alibaba to improve its operations. Alibaba's shares also jumped 7% in the previous trading day. Everyone originally thought that Alibaba could come up with a beautiful report card, but they didn't expect such a result. So in the early hours of this morning, Alibaba's U.S. stock **6%.
Perhaps Alibaba also realized that it could not do anything with its quarterly report, and announced an increase of $25 billion in buybacks at the same time as the quarterly report.
But Alibaba's buyback**, a significant portion of which is used to incentivize executives, announced a $25 billion buyback last year, but the actual outstanding shares decreased by only 33%。That's a drop in the bucket. So I think Alibaba should stop executive equity incentives at present, the company is not operating well, why should it get incentives? The first repurchase will be cancelled, which is the king.